By S. Vandermerwe
During this e-book the writer brings jointly targeted and leading edge paintings established upon her personal study and paintings with major businesses within the overlapping parts of approach, advertising and innovation to supply a brand new and dynamic version to enforce patron concentration in firms. In an atmosphere of falling margins the version exhibits how you can raise price to buyers and enhance company effects.
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Extra info for Breaking Through: Implementing Customer Focus in Enterprises (Bloomberg Professional Library)
Sample text
But when all of the time and energy goes into this resistance it can damage, delay or permanently derail the customer focus process, particularly at this early phase. Part of the reason this has happened in the past is that cascading down meant it was necessary to achieve consensus, especially from the senior ranks. However, what history has taught us is that seniority guarantees neither sensitivity to markets nor a willingness to change. In trying to get this consensus, executives have had to use a disproportionate amount of effort battling with objectors and objections instead of working with positive forces that propel a customer focus journey forwards.
At the top of the agenda would be consideration of the kinds of investments needed for this, and how best to exploit the new opportunity. Irrespective of industry, when investments are made in customer outcomes – rather than in product/service innovations, which only lead to a series of transactions that soon run their course – the enterprise concentrates on how to produce and deliver real customer value, ongoing and long term. It is by doing this that the organization is able to hold onto customers, rather than products, for as long as possible.
So the first customer focus principle can be summarized like this: The value of products or services diminishes with time whereas the value of customers increases over time The mobile phone industry typifies this concept. Nokia, a small and insignificant Finnish pulp and paper mill, emerged out of nowhere in the late 1980s to take the centre spot in handset mobile phones and then, in the 1990s, in internet mobility. By being first, it gained the initial benefits and took the lion’s share. Subsequently sales have gone up and down depending on market conditions and business cycles and competitive bombardment from traditional rivals, who unveil new handsets as quickly as Nokia does.
